Lyon Ltd in issue a 0% loan note with nominal value of $78,000,000. The Loan note which carries an effective interest rate of 4.5% was issue at 8% discount and is repayable after 5 years at a 11% premium. Costs to issue the bond amounted to $2.284 million.

A. Show the relevant journal entries for the initial issue of the loan note, alongside any supporting workings

B. Prepare the schedule reflecting the amortisation of the loan note over the five year period